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“We are looking very closely at that (lowering licence fees and spectrum usage charges). The Telecom Regulatory Authority of India (Trai<\/a>) has written to us on this twice… saying that this whole structure needs to be relooked at because it’s fairly high,” telecom secretary Aruna Sundararajan<\/a> told ET.
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\nTelcos currently pay roughly 8% of annual adjusted gross revenue (AGR) as licence fee and another 3% of AGR as spectrum usage charges (SUC), which are the two key avenues of government earnings from the industry.
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\nSundararajan said through the NTP, the government would signal that ‘revenue’ is a secondary concern. “The primary concern has to be to ensure access and services to 1 billion people. So, if in the past, too much of a focus was on revenue, we need to correct that (in the NTP).”
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“We are looking very closely at that (lowering licence fees and spectrum usage charges). The Telecom Regulatory Authority of India (Trai<\/a>) has written to us on this twice… saying that this whole structure needs to be relooked at because it’s fairly high,” telecom secretary Aruna Sundararajan<\/a> told ET.
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\nTelcos currently pay roughly 8% of annual adjusted gross revenue (AGR) as licence fee and another 3% of AGR as spectrum usage charges (SUC), which are the two key avenues of government earnings from the industry.
\n
\nSundararajan said through the NTP, the government would signal that ‘revenue’ is a secondary concern. “The primary concern has to be to ensure access and services to 1 billion people. So, if in the past, too much of a focus was on revenue, we need to correct that (in the NTP).”
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\n‘We Want Investment to Come Back’<\/strong>
These comments by the top bureaucrat of the department came a few days after telecom minister Manoj Sinha<\/a> told this newspaper that the sector should not be treated as a cash cow, and that levies that add to the government revenue, must be rationalised. The NTP is expected to be finalised by March end.
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\nThe views of the minister and the secretary will resonate with the telecom industry which has for long wanted a sharp reduction in levies and lower spectrum prices. Telcos claim that almost 30 paise of every rupee earned by them is paid as fees and taxes to the government, and this is a major reason for the industry’s Rs 7.7 lakh crore debt.
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\nSundararajan put telcos on notice over rising call drops and fears that the reduction in number of operators would result in cartelisation and increased tariffs.
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\n“We’ll be putting the industry on notice that quality of service has to be improved,” she said. “The message we want to give is that before you go out and acquire new customers, first set your house in order.”
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\nALSO READ: Rising call drops top priority for DoT in 2018, says Telecom Secretary<\/a><\/strong>
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\nSundararajan said telcos had shifted their focus from voice to data, without ensuring that there was enough infrastructure on ground to continue to support voice. “They should have made fresh investments in operations and maintenance,” she said.
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\nHEALTH IN FOCUS<\/strong>
\nDoT wants mobile phone operators to be healthy enough to invest in their business and work with the government to connect over 1 billion to the Internet.
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\n“We want to signal that we want investment coming back into the telecom sector. The main concern at this point in time is to create an investment climate,” said the telecom secretary.
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\nSaying that the worst is over for the industry, the secretary added that the sector should see stability returning after the second quarter FY19, by when most of the mergers and acquisitions would be complete. But she cautioned against any anti-competitive behavior by the three-four operators that will survive in the post-consolidation era.
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\n“We will be keeping a very close watch on anti-competitive behaviour and cartelisation. The Competition Commission of India, Trai and DoT will keep watch on this,” she said.
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\nThe government was considering granting infrastructure status to tower companies and giving a big fillip to the tower sector in NTP 2018 “because tower industry and fibre are equally important” as India moves to 4G and then onto 5G, said the secretary.
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\nStrong infrastructure is also needed for improving the quality of services, she said, and added DoT will hold a series of meetings with carriers after the data based on new quality of service norms becomes available after January 21. “Improving quality of services is our top priority in 2018,” said Sundararajan.
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